Hesitant to pull the trigger

[Biker_on_FIRE]

Hi everyone, I need some thoughts/comments/encouragement/discouragement on whether I should retire from my current job. Here is our situation:

My wife and I are turning 52 years old this year and were originally planning on retiring in 2025 when we will have penalty free withdrawals from our company 401ks. We currently have roughly
$5M in retirement accounts (both Roth and Traditional 401ks and IRAs, 80% equities/20% bonds)
$550K in cash
$150K in brokerage accounts (ETFs)
$500k in pension lump sum when we turn 55
$1.7M in home equity
Mortgage: $550k

Approx expenses: <$150k/year

I have generally been satisfied at work (where I have worked for 23 years) but things have changed recently where it is no longer as fulfilling and it causes me a lot of stress and aggravation. Plus we are in the phase of a project where I would need to put in 60-80 hours/week for the next couple of years. So rather than retiring in 2025, I'm thinking of retiring in the next few months.

My job pays well ($180K) with great benefits (100% 401k match up to 12% of my income and good medical benefits) so I would be giving that up over the next three years. Plus, I would not be able to tap into my 401k at 55 due to separating early. But my wife is planning to continue working until age 55 because she doesn't want to lose some of her retiree benefits (generous pension and retiree medical) so she will have access to her 401k at age 55 which will be more than enough to bridge us between age 55 and 59.5. And she makes a very nice salary ($210k).

I am not worried at all about the financial impact of retiring now. I really feel that any money earned by working longer would just mean a larger inheritance for my kids or for the charities we support. But some of my concerns are:
-In the very small possibility that my wife were to leave her job before age 55, we will have a tough time bridging between 55 and 59.5 unless we withdrew early from our 401k. But I'm not that concerned because I could always go back to work and her job is very very stable. Or else we could set up a 72(t).
-My wife may be resentful that I stopped working and she is still going to work for the next three years. I've asked her several times and she has says that she won't be resentful, but we agree that we won't be absolutely positive until that time comes. I honestly don't think she will be, especially since I told her I would get her a dog that she has been wanting.
-Most of my friends are not retired and probably won't be for at least five years. I have plenty of hobbies that take up a lot of time (biking, hiking, exercise, photography, etc.) so I'm not so worried about not being able to fill up my time, but I think I will very much miss the camaraderie and social interactions at work.

Any other concerns that I should have?

Any thoughts and comments appreciated! Thanks!!

 

[mickj]

No concerns, go for it!

 

[Retireby45ish]

Does the 150k expenses per year include taxes on your 2.2M home? Or repairs and maintenance?

Otherwise if you really only need 150k you should have no money concerns at all based on your stash.

It seems like you know the other concerns (missing co-workers and social aspects). I think that if you put effort into those things then you should be able to prioritize what you listed as important and not lose them.

If the choice was between continuing with a 60-80hr week for a few more years just to leave more to charity when I die or throwing in the towel to start my “next life” in retirement, I know what I’d do.

 

[CardsFan]

As you have said, financially you are fine.

BUT, the possibility of DW resenting your ER is something you do need to consider.

Without anymore info, just based on what you said, I would probably continue to work for a while. BUT I would NOT be putting in 80 hour weeks.

What are they going to do? Fire you? That solves your problem.

 

[street]

If you two can't retire no one can. I see nothing that could make you fail in your ER. Your wife will still be working investments will keep growing.

I would think you would be able to adjust your expenses if you had too. The only hurdle will be just doing it. You would be able to have a very nice ER with great health and energy to do what you want each and every day.
Good Luck!

 

[NoworLater]

We are in a similar position - where my husband will retire before me, and if it means anything other than 1 more data point, I won’t resent it —> and if I really did, well then I would just retire also. If I were you, I would likely try out setting boundaries and working 45-50hours .. if they RIF you, well then you get a nice severance. Financially you are right, collecting “more” is just more for inheritance.

As a side note, my husband (58.5) left the mega corp he worked at for 30 years and went to another, he wanted 1-2 more years of working, but couldn’t bear the environment any longer, it’s worked out well, he is MUCH less stressed, mostly remote and going ok. Maybe that would be an option for you?

 

[Biker_on_FIRE]

Does the 150k expenses per year include taxes on your 2.2M home? Or repairs and maintenance?

Otherwise if you really only need 150k you should have no money concerns at all based on your stash.

It seems like you know the other concerns (missing co-workers and social aspects). I think that if you put effort into those things then you should be able to prioritize what you listed as important and not lose them.

If the choice was between continuing with a 60-80hr week for a few more years just to leave more to charity when I die or throwing in the towel to start my “next life” in retirement, I know what I’d do.

Yes, the $150k in annual expenses include home maintenance and property taxes. Yes, I will work to prioritize the social aspects of retirement. And I agree with you about working more just to leave more to my beneficiaries and am certainly leaning towards starting the next chapter of my life.

 

[skyking1]

I see 700K penalty free available today, and a pension cash out of 500K. If the 500K is also without penalty then you are set for 9 years by my math ,without any growth.
That more than bridges you two into post-60 and your IRAs.
I like @NowOrLater s options above.
That would be what I would pursue, and not another year of nose to the grindstone. Go for a reasonable workload either with the current employer or a new one, or nothing at all.

 

[captain3d]

Worst case I would borrow some out of the house for a few years. And that won’t happen so no worries

 

[RetiredAt49]

I just retired a few months ago (age 49)… was a software engineer and various leadership roles. Last job I was working 60-80 hours a week like you. We also have very similar NW.

I don’t know/understand why your wife would be upset by you retiring early… can’t understand why she doesn’t retire now too… but your stress will drop and happiness will increase 100 fold!

I too don’t want/plan to hand millions of dollars to our kids/charities so give your two week notice and chill [emoji41]

 

[Biker_on_FIRE]

We are in a similar position - where my husband will retire before me, and if it means anything other than 1 more data point, I won’t resent it —> and if I really did, well then I would just retire also. If I were you, I would likely try out setting boundaries and working 45-50hours .. if they RIF you, well then you get a nice severance. Financially you are right, collecting “more” is just more for inheritance.

As a side note, my husband (58.5) left the mega corp he worked at for 30 years and went to another, he wanted 1-2 more years of working, but couldn’t bear the environment any longer, it’s worked out well, he is MUCH less stressed, mostly remote and going ok. Maybe that would be an option for you?

Thanks for your advice! While I could set a boundary of 40 hours, I just could not in good conscience work only 40 hours while my colleagues are putting in 60-80 hours to get the job done. And I’m not really interested in re-starting at another company.

 

[Biker_on_FIRE]

I see 700K penalty free available today, and a pension cash out of 500K. If the 500K is also without penalty then you are set for 9 years by my math ,without any growth.
That more than bridges you two into post-60 and your IRAs.
I like @NowOrLater s options above.
That would be what I would pursue, and not another year of nose to the grindstone. Go for a reasonable workload either with the current employer or a new one, or nothing at all.

Thanks! Yes, your calculations are right, although we have some pretty major home remodeling projects (>$200k) coming up that will eat into our available liquid assets which might leave us a little short if both of us retired now. But I’m really leaning on the ‘no workload option’ ?.

 

[Delawaredave5]

Surely you understand there's nothing financially stopping you from retiring now.

Work: You either work: 60, 40, or 0 hours per week.

I see a lot of posts like: "high paying job, high stress, hate it, it's killing me, have to work 60-80 hours per week".

I would try "punching the clock" and work 40 hours. Period. If it "can't be done", you get fired. So what, you're fine.

That's what I have done. Has worked great.

 

[USGrant1962]

As you said, financially you are good to go. Even in your worst scenario where you might draw from your 401(k)s early and pay the penalty, an extra $10K-15K in taxes would be annoying but is immaterial against your ~$8M net worth.

You mentioned project work, is your expertise and industry amenable to consulting?

I consult part time and it has worked out well, providing more income than I planned and keeping me engaged with no megacorp BS. It seems something like that might fill some gaps until your wife retires.

 

[skyking1]

^ good stuff. There is a lot of wiggle room between "60~80 hours a week" and zero if you can swing it into consulting. It would leave you lots of time to manage those remodeling projects.......and pay for them.

 

[Retireby45ish]

I see a lot of posts that share my sentiment of missing the coworker interactions once someone finally retires.

I wish there was a way to join or start a location similar to MMM where like minded early retirees could go to socialize, work out, collaborate and work on projects,etc.

If I lived in a more populated area I’d try to get some people together to get one of these going.

 

[FLSUnFIRE]

If the dog bonds with you more than your wife would that cause friction? She wants the dog but if the dog spends significantly more time with you than her while she's still working it increases the likelihood that it will be more responsive to you than her. -It's only one factor but something to think about.

 

[Biker_on_FIRE]

I just retired a few months ago (age 49)… was a software engineer and various leadership roles. Last job I was working 60-80 hours a week like you. We also have very similar NW.

I don’t know/understand why your wife would be upset by you retiring early… can’t understand why she doesn’t retire now too… but your stress will drop and happiness will increase 100 fold!

I too don’t want/plan to hand millions of dollars to our kids/charities so give your two week notice and chill [emoji41]

Thank you! My wife wants to hang on until age 55 because she will lose retiree medical and a significant portion of her pension annuity and lump sum if she leaves before 55. And yes, my thinking is that I'm not interested in working more just for my beneficiaries. They will inherit plenty even if I retire now.

 

[Biker_on_FIRE]

Surely you understand there's nothing financially stopping you from retiring now.

Work: You either work: 60, 40, or 0 hours per week.

I see a lot of posts like: "high paying job, high stress, hate it, it's killing me, have to work 60-80 hours per week".

I would try "punching the clock" and work 40 hours. Period. If it "can't be done", you get fired. So what, you're fine.

That's what I have done. Has worked great.

As you said, financially you are good to go. Even in your worst scenario where you might draw from your 401(k)s early and pay the penalty, an extra $10K-15K in taxes would be annoying but is immaterial against your ~$8M net worth.

You mentioned project work, is your expertise and industry amenable to consulting?

I consult part time and it has worked out well, providing more income than I planned and keeping me engaged with no megacorp BS. It seems something like that might fill some gaps until your wife retires.

^ good stuff. There is a lot of wiggle room between "60~80 hours a week" and zero if you can swing it into consulting. It would leave you lots of time to manage those remodeling projects.......and pay for them.

Thanks, I've considered consulting as an option of part-time work. I'm thinking I may evaluate that option if I find myself bored or miss the social interactions of work.

 

[Biker_on_FIRE]

If the dog bonds with you more than your wife would that cause friction? She wants the dog but if the dog spends significantly more time with you than her while she's still working it increases the likelihood that it will be more responsive to you than her. -It's only one factor but something to think about.

Haha, I mentioned that to my wife recently, but she will be just happy to have a dog. Besides, I think the more likely scenario is that she will spoil the dog (giving it table scraps, allowing the dog on furniture, etc.) when she has time with it and the dog will not respond to me when she is around!